H&M lifts third-quarter operating profit: H&M stock sits 18.38 percent below its high

Published on 10/14/2026 at 13:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Profit reached SEK 6.04 billion on September 24, 2026. H&M stock costs EUR 14.92 on October 14, 2026 versus the EUR 14.90 Xetra close.

Profitability improves in third quarter

Operating profit reached SEK 6,037 million in the third quarter of 2026.
The operating margin rose to 10.60 percent in the third quarter of 2026.
H&M stock trades at EUR 14.92 at 1:42 p.m. CEST at Lang & Schwarz on October 14, 2026, 0.13 percent above the Xetra close of October 13, 2026.

H & M Hennes & Mauritz AB, SE0000106270, Illustration mit AI erstellt.

H&M (SE0000106270) was trading at EUR 14.92 at Lang & Schwarz on October 14, 2026, at 1:42 p.m. CEST, up 0.13 percent versus the Xetra close of October 13, 2026 at EUR 14.90. The fashion retailer's third-quarter operating profit rose to SEK 6,037 million from SEK 4,914 million, giving the stock a profitability story even as sales growth remained limited.

Profit rises faster than sales

In its nine-month report dated September 24, 2026, H&M Group said third-quarter net sales reached SEK 57,189 million, compared with SEK 57,017 million a year earlier. Operating profit increased from SEK 4,914 million to SEK 6,037 million, while the operating margin rose from 8.60 percent to 10.60 percent.

The quality of that improvement matters. H&M said the margin benefited from one-time effects linked to tariffs and goods imports, while selling and administrative expenses fell 1.00 percent to SEK 24,832 million. That combination points to stronger cost control, but it also leaves sales momentum as the central test for the next quarter.

What drives the margin

The Daily Star reported on September 25, 2026 that the operating profit exceeded the mean analyst forecast of SEK 5,140 million. The same report said the gross margin reached 54.00 percent, compared with 52.90 percent a year earlier, while September sales were expected to increase 1.00 percent in local currencies.

H&M's own report also showed operating cash flow of SEK 11,908 million in the third quarter, up from SEK 9,985 million. Inventory rose to SEK 39,355 million from SEK 37,938 million, which the company attributed to goods in transit and disruption in global supply chains.

The analyst counterpoint is valuation discipline. Marketscreener reported that Handelsbanken retained a Hold rating and cut its target from SEK 190 to SEK 180 after the results. The bank also expected fourth-quarter operating profit to fall 4.00 percent to SEK 6,080 million, underscoring the risk that higher freight costs and promotions could restrain the next step in earnings.

Stock remains below its yearly high

At EUR 14.92, the Lang & Schwarz quote stood EUR 3.36, or 18.38 percent, below the 52-week high of EUR 18.28 and EUR 1.22 above the 52-week low of EUR 13.70 on October 14, 2026. The current price was 0.13 percent above the EUR 14.90 Xetra close of October 13, 2026, keeping the daily move modest despite the stronger quarterly profit.

The further course of trading is shown by the continuously updated real-time quote of H&M stock.